Whereas Section 193 of the Community Charter restricts a municipality from imposing fees or taxes except as expressly authorized under the Community Charter or another Act; And whereas urban sprawl creates higher infrastructure costs, transportation costs, and other expenses borne by society; And whereas municipalities attempt to control urban sprawl whilst encouraging healthier lifestyles and alternative modes of transportation: Therefore be it resolved that the provincial government amend the Community Charter to allow municipalities to adjust their property tax rates by setting density brackets in their jurisdiction, to use at their discretion, as an incentive to reduce urban sprawl and as a method of assigning infrastructure and maintenance costs more accurately amongst end users.
Ministry of Municipal Affairs and Housing The property tax system in British Columbia is based on balancing the various principles of good policy including: equity, certainty, simplicity, and efficiency of tax administration. To best achieve this balance, the Province sets the different property tax classes based solely on the use of property e.g. Residential, Business, Major Industry, and Utilities. Setting property classes based on density would add significant levels of complexity to the existing assessment and taxation system, which would negatively impact the certainty, simplicity, and efficiency of the current tax system. The current property assessment system indirectly addresses density as most low-density properties like single-detached dwellings and acreages have a significantly higher taxable assessment than higher-density properties like townhouses and condominiums. As the Province must balance the equity of the tax system with its operational simplicity and efficiency, the Ministry is not currently prepared to consider legislative changes allowing differing tax rates based on density. Local governments already have significant control of local taxation and of future density through their planning, zoning, and development financing tools including density bonusing.